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| Probably a truer statement is that it was an excessive debt/bubble that turned into a liquidity crisis... the first 5,000 off the Dow... well... really didn't surprise anyone... the next 3,000 probably did though... as panic selling occured.
Part of the economy has shut down and needs to be rebuilt... The Ethanol industry for example.. look at Pacific Ethanol and VeraSun... now setting aside the wisdom of their business models and all the dynamics in that industry.. but at some point the market collapsing to a penny stock.. in terms of PEIX or VeraSun's plants being reopened under new manangement... and now with the news of resuming production and HIRING people.. is in it's own corner of the economy rebuilding things as they were before.. one brick at a time...
Will Pacific survive or go the way of VeraSun? They look a lot better today then they did 9 months ago...
However, we are not back to the point of every ethanol plant running... nor every house built in Vegas.. having it's mortgage paid... BUT we are A LOT BETTER then we were this time one year ago.
I think Bernanke did the right thing to repair the last 3,500 pts in the Dow... although you may be correct that it will take something different... maybe some fiscal responsibility by our government.. to repair the next 4,000 pts... and it probably won't occur over the next 12 months...
It's quite possible that the recession storm has passed... now we have the clean up.. but yal... I think we are going to make it.
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The Fed made a $52 Billion dollar profit last year.
